Greetings Term Sheeters. Finance reporter Luisa Beltran here.
The long slumbering IPO market appears to be waking up. A trio of high-profile technology IPOs, led by semiconductor firm Arm, are expected to launch in September. The IPOs are generating a ton of excitement and I’m told that bankers are getting calls from companies looking to move up their listing plans.
But while it takes scores of bankers, lawyers, and entry-level analysts to pull off an IPO, there’s one position that’s the most coveted of all: lead left bookrunner. This banker, which typically is listed first amongst the underwriters or the “lead left,” has the responsibility of leading the syndicate, or the group of banks, through the IPO process. Companies typically pick the lead left banker at the start of the IPO process, explains Carina Antweil, a partner at law firm Baker Botts, who is deputy chair of the Houston corporate department, and has represented several companies that have gone public. There is a “bake off” where investment banks will compete for the role as the lead bookrunner. Many of the Wall Street banks will pitch their work and prior experience to get the role, Antweil said.
The lead left banker functions as a trusted advisor to the company, walking side-by-side with them from start to finish of the IPO, Antweil said. Their goal is to get the company in the best position when they go to market, she said. They participate in structuring decisions at the outset, decide how the IPO will be marketed, they lead the road show, and are very involved in preparing the business disclosure for the Form S-1 that is filed with the SEC, she said.
And when it comes to this fall’s slate of IPOs, it appears Goldman has won some bragging rights. Goldman is the lead bookrunner for Instacart and Klaviyo, and is one of four banks heading up the Arm IPO. Birkenstock, the shoe brand, is expected to go public this fall; Goldman is serving as their lead left bookrunner as well. Goldman’s other deals in 2023 include serving as lead left on the IPOs of Kenvue, ODDITY Tech and Credo Technology Group, as well as Mobileye, which went public in October.
So far this year, Goldman is the lead bookrunner overall for U.S. listed traditional IPOs, with eight offerings valued at $840 million and an 8.2% market share, according to Dealogic. Running a close second is BofA Securities with eight transactions totaling $826 million and an 8.1% market share. JPMorgan is ranked third with seven deals valued at $778 million and a 7.6% market share.
If Arm, Klaviyo, and Instacart perform well, I’m told another 20 to 30 companies could possibly list this year. Meaning plenty of “left leads” to fight for.
The goings on at Greylock…Renowned investor and LinkedIn cofounder Reid Hoffman is stepping back at Greylock Partners as he focuses more attention on artificial intelligence efforts, according to a new report from the Wall Street Journal. Greylock has reportedly told investors Hoffman will not be a general partner for the new $1 billion fund the firm is raising. “Reid continues to be closely engaged within Greylock as a strategic partner and colleague,” a Greylock spokeswoman told the Journal. —Jessica Mathews
Have a great day,
Luisa Beltran
Twitter:@LuisaRBeltran
Email: luisa.beltran@fortune.com
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Joe Abrams curated the deals section of today’s newsletter.
VENTURE DEALS
– Hyperproof, a Bellevue, Wash.-based risk and compliance management company, raised $40 million in funding. Riverwood Capital led the round and was joined by existing investor Toba Capital.
– QuantHealth, a Tel Aviv, Israel-based clinical trial design startup using A.I. to simulate trials, raised $15 million in Series A funding. Bertelsmann Investments and Pitango HealthTech co-led the round and were joined by existing investors Shoni Top Ventures and Nina Capital.
– ControlRooms.ai, an Austin, Tex.-based A.I. startup focused on automating the industrial troubleshooting process, raised $10 million in Series A funding. Origin Ventures led the round and was joined by Amity Ventures, Tokio Marine Future Fund, S3 Ventures, and others.
– Praso, a São Paulo, Brazil-based distribution platform for small retailers, raised $9.3 million in Series A funding, according to TechCrunch. Valor Capital Group and NFX co-led the round and were joined by existing investors Base Partners, Formus Capital, Iporanga Ventures, and Endeavor Scale-Up.
– DeForm, a San Francisco-based web3 marketing startup, raised $4.6 million in seed funding. Kindred Ventures led the round and was joined by Elad Gil, Scalar Capital, A.Capital, Alchemy Ventures, and others.
– Refiberd, an Oakland, Calif.-based textile waste sorting company, raised $3.4 million in seed funding. True Wealth Ventures led the round and was joined by Better Ventures, the Schmidt Family Foundation, Fashion for Good, and others.
– SNERPA Power, a Reykjavík, Iceland-based energy services provider for power-intensive users, raised €2.2 million ($2.4 million) in funding. Crowberry Capital and BackingMinds co-led the round.
PRIVATE EQUITY
– Archimed SAS agreed to take private Instem, a Staffordshire, U.K.-based life sciences software company, in a deal valued at £203 million ($256.5 million).
– Bakelite Synthetics, backed by Investindustrial, agreed to acquire LRBG Chemicals, a Toledo, Ohio-based resin and derivative products manufacturer for industrial markets. Financial terms were not disclosed.
– BID Group, backed by Highland West Capital, agreed to acquire Industrial Cutting Solutions, a Buhl, Ala.-based wood-cutting equipment manufacturer. Financial terms were not disclosed.
– Brady IFS, a Bell, Calif. and Las Vegas, Nev.-based food service, janitorial, and sanitation product distributor backed by Kelso & Company, agreed to merge with Envoy Solutions, a Glenview, Ill.-based provider of janitorial, sanitation, and food service products. Financial terms were not disclosed.
– Marco Capital Partners, a portfolio company of Align Capital Partners, acquired American Seal & Packing, a Santa Ana, Calif.-based distributor of mechanical seals and vee packing materials. Financial terms were not disclosed.
– SRJ Sports Investment acquired a minority stake in Professional Fighters League, a New York City-based mixed martial arts league. Financial terms were not disclosed.
– Tower Arch Capital recapitalized TD&I Cable Maintenance, a Lakeland, Minn.-based specialty infrastructure services provider. Financial terms were not disclosed.
OTHER
– Novo Nordisk agreed to acquire Embark Biotech, a Copenhagen, Denmark-based biotechnology company for up to €471 million ($512 million), according to Bloomberg.
– Gokaldas Exports agreed to acquire Atraco Group, a Dubai, U.A.E.-based clothing apparel manufacturer, for $55 million.
PEOPLE
– Zeal Capital Partners, a Washington, D.C.-based venture capital firm, hired Emily Zhen as principal. Formerly, she was with New Enterprise Associates.
